Financial Performance - For the six months ended June 30, 2022, the company recorded a profit of approximately RMB 46.0 million, an increase of about 2.9% from approximately RMB 44.7 million for the same period in 2021[12]. - Revenue for the same period increased by approximately 9.5% to about RMB 133.2 million, compared to approximately RMB 121.6 million for the six months ended June 30, 2021[6]. - Other income rose approximately 73.3% to about RMB 5.2 million, up from approximately RMB 3.0 million for the same period in 2021[7]. - The net profit margin slightly decreased to 34.5% from 36.8% for the same period in 2021, attributed to rising legal and professional fees[12]. - Net profit for the period was RMB 45,990,000, representing a 2.8% increase compared to RMB 44,748,000 in the previous year[63]. - Basic and diluted earnings per share for the period were RMB 0.0307, up from RMB 0.0298 in the prior year[63]. - Profit before tax was RMB 45,990,000, up from RMB 44,748,000, indicating a year-over-year increase of 2.8%[82]. Expenses and Costs - Employee costs slightly decreased to approximately RMB 6.7 million from about RMB 6.9 million for the same period in 2021[8]. - Other operating expenses increased to approximately RMB 16.8 million, representing 12.6% of total revenue, compared to 9.7% for the same period in 2021[10]. - Financial costs increased to approximately RMB 50.5 million, up from about RMB 48.2 million for the same period in 2021, primarily due to a significant rise in interest from customer deposits[11]. - The financial costs for the period were RMB (50,480,000), compared to RMB (48,206,000) in the previous year, reflecting an increase of 4.7%[63]. - The total remuneration for key management personnel increased to RMB 3,116 thousand for the six months ended June 30, 2022, from RMB 2,553 thousand in the same period of 2021[101]. Assets and Liabilities - As of June 30, 2022, cash and cash equivalents amounted to approximately RMB 69.2 million, a decrease from RMB 141.8 million as of December 31, 2021[15]. - Total borrowings decreased from RMB 795.9 million as of December 31, 2021, to RMB 467.7 million as of June 30, 2022, reflecting a significant reduction in leverage[15]. - The debt-to-equity ratio improved to approximately 26.2% as of June 30, 2022, down from 38.5% as of December 31, 2021, primarily due to the reduction in borrowings[16]. - Non-current assets decreased to RMB 824,287,000 from RMB 1,092,093,000 as of December 31, 2021, reflecting a decline of 24.5%[64]. - Current assets totaled RMB 1,302,040,000, slightly down from RMB 1,344,441,000 at the end of 2021[64]. - Total liabilities decreased to RMB 370,682,000 from RMB 360,500,000, indicating a slight increase of 0.3%[64]. - The company's total equity increased to RMB 1,320,811,000 from RMB 1,273,474,000, marking a growth of 3.7%[64]. Risk Management - The company focused on compliance management and enhancing risk management capabilities amid ongoing challenges from the COVID-19 pandemic[5]. - The company has developed a comprehensive risk management system to address various risks, with credit risk being the primary concern[27]. - The management is focusing on risk asset identification and assessment, enhancing risk management, and improving overdue asset recovery efforts[36]. - The company aims to diversify its business to reduce risks associated with solely focusing on financing leasing operations[37]. Corporate Governance - The company has adopted most of the best practices outlined in the corporate governance code[40]. - The company established a Compensation Committee consisting of three members, with independent non-executive director Mr. Liu Changxiang as the chairman, to review and recommend compensation policies for directors and senior management[43]. - The company held two Compensation Committee meetings during the reporting period, with all members present, to review director compensation and approve the remuneration for executive directors Mr. Luo Zhenming and Mr. Qiao Renjie[43]. - The Nomination Committee, also comprising three members and chaired by independent non-executive director Mr. Liu Xuewei, evaluated the independence of non-executive directors and made recommendations for director appointments[46]. Investments and Acquisitions - The company completed the acquisition of a 70% stake in the target academy for a total consideration of RMB 566 million (approximately HKD 660.4 million) on August 18, 2022[32]. - The company did not engage in any significant investments or acquisitions during the reporting period[24]. Share Capital and Securities - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2022[48]. - The company adopted a share option scheme in February 2019, which allows for the issuance of up to 150,000,000 shares under the scheme[49]. - As of June 30, 2022, there were no unexercised share options under the share option scheme, nor any options granted, agreed to be granted, exercised, cancelled, or lapsed[52]. - The company’s issued share capital remained at 1,500,000,000 shares with a par value of USD 0.000001 per share as of June 30, 2022[94]. Cash Flow - The company reported a net cash inflow from operating activities of RMB 274,724 thousand for the six months ended June 30, 2022, a decrease of 49.5% compared to RMB 543,323 thousand for the same period in 2021[67]. - The company reported a net cash outflow from financing activities of RMB 350,917 thousand for the six months ended June 30, 2022, compared to RMB 542,114 thousand for the same period in 2021, indicating a reduction in cash outflow[67]. Foreign Exchange and Credit Risks - The majority of the company's revenue and costs are denominated in RMB, exposing it to foreign exchange risks primarily related to RMB fluctuations[25]. - The expected loss rate for non-credit impaired receivables was 0.18% as of June 30, 2022, compared to 0.31% as of December 31, 2021[87]. - The company reported a significant increase in non-credit impaired expected credit losses, with RMB 90,000 as of June 30, 2022, compared to RMB 235,000 as of December 31, 2021[89].
友联国际教育租赁(01563) - 2022 - 中期财报